The Canada Groceries and Essentials Benefit in 2026
The CGEB explained in plain language for 2026: a quarterly tax-free federal payment that pays Canadian families about double what the old GST/HST credit paid. CGEB stands for Canada Groceries and Essentials Benefit. It went live July 2026 and replaced the GST/HST credit completely on that date.
For a Canadian couple with two kids, the CGEB pays $1,358 a year ($890 adult component plus $234 per child × 2), spread across four quarterly deposits of $339.50 each. That's roughly double the $740 the same family would have collected under the old GST credit. Finance Canada announced the program in January 2026 and Parliament passed the legislation in February 2026.
The calculator on this site already includes CGEB in the total tax-free transfer line. This page explains what changed, how the amounts work, and what to expect through the 25% annual increase schedule that runs through 2031.
TL;DR: CGEB pays $890 to couples plus $234 per child quarterly, replacing the GST/HST credit in July 2026. It phases out at 5% above AFNI of about $46,500. Quarterly deposits land in July, October, January, and April. The 2026-27 amounts are scheduled to increase 25% annually through 2031, so by July 2031 the couple amount will be roughly $2,716 and per-child will hit $714.
Quick answer: what CGEB pays in 2026
For the 2026-27 benefit year (July 2026 to June 2027), CGEB pays:
- Single adult: $679 a year ($169.75 per quarter)
- Couple (combined): $890 a year ($222.50 per quarter)
- Per child under 19: $234 a year ($58.50 per quarter)
A typical couple with two kids: $890 + (2 × $234) = $1,358 a year, or $339.50 per quarter, paid tax-free.
A typical single parent with two kids: $679 + (2 × $234) = $1,147 a year, or $286.75 per quarter.
The phase-out starts at AFNI of approximately $46,500 and drops at 5% per dollar above that threshold. So a family at $60,000 AFNI loses $675 to the phase-out ($60,000 − $46,500 = $13,500 × 5%), leaving $683 of the original $1,358 if they're a 2-kid couple.
Canada Revenue Agency pays CGEB the same way it paid the old GST credit: automatic direct deposit if you've filed a tax return, no application required. The first CGEB deposit landed in July 2026. A one-time top-up was also paid June 5, 2026 as part of the transition.
How CGEB replaced the GST/HST credit
The GST/HST credit had been part of Canadian family finance since 1991. It paid quarterly, tax-free, and phased out for higher-income households. The structure was solid. The amounts had not kept up with grocery inflation since 2015.
Finance Canada announced the replacement in January 2026 and called it the Canada Groceries and Essentials Benefit, or CGEB. Parliament passed the legislation in February 2026 with cross-party support. The transition went live July 2026 to align with the federal benefit year calendar that CCB uses.
Three things changed from GST/HST credit to CGEB:
- Amounts roughly doubled. Old GST credit paid $340 per adult and $179 per child, plus a $179 supplement for unattached individuals. CGEB pays $679 single, $890 couple combined, $234 per child. Net effect: a couple with two kids goes from about $738 to $1,358 a year.
- Couple structure simplified. Old GST credit treated each adult as a separate $340 entitlement. CGEB uses a single combined-couple line of $890 instead. Cleaner to compute, slightly less generous than 2 × $679 would have been.
- Annual indexation accelerated. Old GST credit indexed roughly with inflation. CGEB is scheduled to increase 25% per year through 2031, which is much faster than CPI.
Everything else stayed the same. Same 5% phase-out rate. Same AFNI-based eligibility. Same four-times-a-year deposit cadence. Same no-application-needed setup if you file your taxes.
CGEB amounts: $890 couple, $679 single, $234 per child
The 2026-27 CGEB amount structure is the easiest part to remember.
- $679 a year if you're a single adult with no spouse.
- $890 a year combined if you're a couple (married or common-law).
- $234 per child under 19, no cap on number of kids.
The CGEB does not increase faster for the third, fourth, or fifth child the way the CCB Tier 1 rate steepens. Every child counts the same: $234 a year.
A few specific scenarios:
- Single parent, 1 kid: $679 + $234 = $913/year
- Couple, no kids: $890/year
- Couple, 1 kid: $890 + $234 = $1,124/year
- Couple, 2 kids: $890 + $468 = $1,358/year
- Couple, 4 kids: $890 + $936 = $1,826/year
- Couple, 6 kids: $890 + $1,404 = $2,294/year
Each amount is split across four quarterly deposits. So the couple with two kids sees $339.50 hit the account in July, October, January, and April.
The CGEB phase-out formula in 2026
CGEB phases out at 5% of every dollar of AFNI above approximately $46,500. The same percentage rate the old GST/HST credit used.
The formula:
total_entitlement = adult_component + (per_child × num_kids_under_19)
if AFNI ≤ $46,500:
CGEB = total_entitlement
else:
CGEB = max(0, total_entitlement − 0.05 × (AFNI − $46,500))Five practical examples for a 2-kid couple with $1,358 full entitlement:
- AFNI $40,000: full $1,358 (below the phase-out threshold)
- AFNI $50,000: $1,358 − ($3,500 × 0.05) = $1,183
- AFNI $60,000: $1,358 − ($13,500 × 0.05) = $683
- AFNI $73,000: $1,358 − ($26,500 × 0.05) = $33
- AFNI $80,000: $0 (fully phased out)
The CGEB phase-out reaches zero faster than CCB does. By AFNI ~$73,000-$74,000 a 2-kid couple is fully off the CGEB, while CCB at the same AFNI is still paying about $12,000 a year.
For a single parent with the same 2 kids ($1,147 entitlement), the phase-out reaches zero at about AFNI $69,500.
A worked example of CGEB for a 2-kid family
A Canadian couple in Alberta, both under 30, two kids ages 3 and 5. Combined income $58,000.
Step 1: compute total entitlement.
- Adult couple component: $890
- 2 children × $234 = $468
- Total CGEB entitlement: $1,358
Step 2: compute AFNI. Combined income $58,000. No RRSP contributions, no support paid. AFNI = $58,000.
Step 3: apply the phase-out.
- AFNI above threshold: $58,000 − $46,500 = $11,500
- Phase-out reduction: $11,500 × 0.05 = $575
- Net CGEB: $1,358 − $575 = $783/year
Step 4: split across quarterly deposits. $783 ÷ 4 = $195.75 per quarter. Deposits hit on or near July 5, October 5, January 5, and April 5.
This $783 is on top of whatever CCB, ACFB (paid separately in Alberta), and provincial tax credits the family also collects. For this specific family, total federal-plus-provincial tax-free transfers are roughly $15,000-$17,000 a year.
CGEB payment schedule: quarterly in July, October, January, April
CGEB deposits land four times a year, on or near the 5th of the month. The 2026-27 schedule:
- July 4, 2026 (first CGEB deposit, replacing the old July GST credit)
- October 5, 2026
- January 5, 2027
- April 5, 2027
If the 5th falls on a weekend or stat holiday, CRA pays on the last business day before. The deposit shows up in the same direct-deposit account you set up for CCB. If you don't have direct deposit, a cheque is mailed.
The June 5, 2026 deposit was a one-time top-up paid as part of the GST/HST-to-CGEB transition. It was not a CGEB payment per se. It was a final GST/HST credit deposit. CGEB proper started in July 2026.
Quebec residents receive the same federal CGEB on the same schedule. Quebec's separate provincial credits run on their own schedule via Revenu Québec.
What's new in CGEB for 2026
Three things to know about CGEB in 2026, beyond the fact that the program is new.
The 25% annual increase is locked in through 2031. The legislation explicitly indexes CGEB amounts by 25% per year for five years. This is far faster than CPI inflation (typically 2-4% annually). By July 2031, the couple amount will be approximately $2,716 and the per-child amount $714.
The phase-out threshold is also indexed. CRA has not finalized whether the threshold rises with CPI or with the 25% increase. Best guess is CPI-based, which means the phase-out will eat more of the increased entitlement each year unless the threshold accelerates too. Watch the June 2027 CRA release for clarity.
A one-time June 5, 2026 transition payment was made. Most families received an extra GST/HST credit deposit in June 2026 to smooth the transition. If you didn't receive it, check your CRA My Account for any retroactive adjustments before contacting CRA.
How the 25% annual increase works through 2031
The 25% annual increase is the most important long-term structural feature of CGEB. It compounds.
Five-year projection for couple amount + per-child:
- 2026-27: $890 couple + $234 per child
- 2027-28: $1,113 couple + $293 per child
- 2028-29: $1,391 couple + $366 per child
- 2029-30: $1,739 couple + $458 per child
- 2030-31: $2,173 couple + $572 per child
- 2031-32: $2,716 couple + $715 per child (final increase year)
For a 2-kid couple, the total entitlement rises from $1,358 in 2026-27 to about $4,146 in 2031-32 if the phase-out is escaped. That's a near-tripling in five years for a benefit that was a $738 footnote in 2024.
After 2031-32, the legislation reverts to standard CPI indexation. So families should expect modest growth from 2032 onward, not the aggressive 25% per year.
This compounding makes CGEB a meaningful line item in family planning for the next five years. Most online calculators have not caught up. The calculator on this site uses the current 2026-27 numbers and will refresh each July when CRA publishes the next year's amounts.
Frequently asked questions
What is the CGEB in Canada?
The Canada Groceries and Essentials Benefit is a quarterly federal tax-free payment that replaced the GST/HST credit in July 2026. It pays $679 single, $890 couple combined, plus $234 per child under 19, phasing out at 5% above AFNI ~$46,500. Designed to offset grocery and essential-goods costs for low and middle-income Canadian families.
When did CGEB replace the GST/HST credit?
July 2026. Finance Canada announced the replacement in January 2026 and Parliament passed the legislation in February 2026. The last GST/HST credit deposit was a transition top-up paid June 5, 2026. The first CGEB deposit was July 4, 2026.
How much is the CGEB payment in 2026?
For the 2026-27 benefit year: $679 a year for a single adult, $890 combined for a couple, plus $234 per child under 19. Paid in four quarterly deposits in July, October, January, and April. Phases out at 5% of AFNI above ~$46,500.
Who qualifies for CGEB?
Same eligibility as the old GST credit. Canadian resident for tax purposes, 19 or older (or married/common-law, or a parent), filed a 2025 tax return. No separate application needed. CRA automatically calculates the amount from your tax return AFNI.
When is the CGEB paid?
Four times a year, on or near the 5th of July, October, January, and April. If the 5th falls on a weekend or stat holiday, CRA pays the last business day before. Same direct-deposit account you use for CCB.
Verdict on the CGEB explained for 2026
CGEB explained in one line: the federal government roughly doubled what it pays Canadian families through the quarterly grocery credit, and locked in 25% annual increases for five years.
For a typical 2-kid couple, that's $620 more a year in 2026-27 than the old GST credit would have paid. Compounded through the 25% schedule, the same family will be collecting close to $4,000 a year in CGEB by 2031-32. This is a meaningful structural shift in Canadian family transfers that most personal-finance content has not absorbed yet.
The calculator on this site already runs CGEB at the 2026-27 numbers. Use it to see what your family gets, alongside CCB, the provincial supplement, and the spousal credit if you're a single-income household.